> The owning class will use it to reduce payroll costs
Of course. That's been going on since the invention of the plow. That's why today we can do more interesting things than turn over the earth with a pointy stick all day every day.
> economic democracy, where average people regain control over their lives
History shows us that this inevitably means people lose all control over their lives, because the state will make your decisions for you and assign you your job.
For example, let's say the color of cars produce by car companies is determined by democracy. 59% vote for the cars to be green. And if you want a red car? Too bad. What if you want a 4 seat car? No dice, 53% voted for 2 seaters to be made. What if you didn't want a car stereo? You're stuck paying for it anyway, as 73% voted for it.
You're argument is that the only two alternatives are that the ruling class and owning class be separate groups of people, or the same group of people. And either way the labor class if F'ed.
You're right that having the ruling class and the owning class being the _same people_ is terrible. That's what we're living in right now!
But what about the labor class being the owning class? What if Amazon was owned by the people who work at Amazon? Instead of Bezos?
The labor class is free to form collectives and cooperatives. There's no law against it.
Bezos started Amazon with $300,000. I'm sure it wouldn't take too long for workers to raise that kind of money, after all, $300,000 to buy a house is considered cheap.
On the other hand, the history of businesses being confiscated and handed over to the workers has not been a successful one.
Some startups are worker-owned through stock grants, but those grants are rarely evenly distributed. The founders hold the majority as long as they can.
It is a good practice for companies to include stock as part of the pay package. It encourages alignment of the company with the employees. Very, very successful companies follow this model, such as Microsoft, Apple, Amazon, Google, etc.
It seems to indicate that if Amazon was employee-owned today, the first thing they would vote to do is convert future hires into non-owners, because that's what the founders did when it was actually employee-owned.
I mean, it probably depends on the type of employee. I assume folks doing deliveries or working in warehouses aren't getting stock packages. I wonder if the admin or accounting folks do.
> But what about the labor class being the owning class? What if Amazon was owned by the people who work at Amazon? Instead of Bezos?
I wonder how many people who repeat things like this know that Bezos owns less than 10% of Amazon. About 2/3rds of Amazon is owned by institutional investors, much of which is in turn owned by individuals in their 401ks and other retirement plans. So "the people" own more of Amazon than Jeff Bezos already.
If you're implying that the government should confiscate Jeff Bezos' personal ownership stake in the business he created and redistribute it to other people, that's a very different topic. It's in the realm of fantasy, not reality, so I don't consider it very interesting. At minimum, it should be noted that if the government gets into the business of confiscating shares from people, the value of those shares will plummet as investors move their money into safer investments, so it wouldn't be a simple numerical wealth transfer from Bezos to others.
Regardless, there's nothing stopping people from getting together and starting an employee-owned collective company that enters the market. They can compete in the market and try to hire away talent from the other corporations.
Yes, Bezos only owns ~10%, but I think it's fair to say that, of Amazon employees and owners, he has more than 10% of the power within Amazon.
If warehouse workers want better conditions they have to solve a national coordination problem without getting crushed. If Bezos wants their working conditions to be more efficient he has to write a memo.
Edit: to connect this back to ownership. This disparity is directly responsible for determining whether profits pay fair wages or got to Bezos and the other owners.
Given the low pay and harsh conditions of the people who create the wealth of Amazon, I do not see confiscating it from the current owners as a Bad Thing
There are probably better means to achieve better ends, but the status quo is very fucking rotten
I have a whole list of things I'd like from my car that the market does not provide because it is more profitable not to. Why do I get the feeling that instead of seeing this as a horror story you would scold me for unreasonable expectations, even though it is the identical mirror form of the horror story you just told?
Mass production reduces costs by standardizing things. But still, car companies offer a wide range of options if you're willing to wait for your order. If Ford doesn't provide what you want, there's GM, Toyota, Hyundai, etc. There's no shortage of variety.
There's also a small cottage industry of people who will make fully custom cars for you. They're pretty expensive, though, as they don't benefit from economies of scale.
Because Mr. Bright has a long, storied comment history of neolibertarian fantasies being wielded as a cudgel against anyone who dares envision a future that does not align with his own.
Speaking from experience with them in another thread. Your best bet is to ignore the bait and move on to more fruitful discussions.
With all due respect, and I mean that sincerely as you've accomplished far more than I have, you aren't here for debate. Your viewpoint is stuck in the cold war mentality where Soviet communism was a failure (it did, but that doesn't mean that everything they touched was bad) and America and its brand of Free Market capitalism is perfect (it isn't) and responding to your comments is like talking to a brick wall for all the "debate" that actually occurs. Other long time posters here know better than to engage, but hey, you caught me waiting on Claude.
Having lived through communism I can say the only good things were equality of men and women (in my communist country there were just as many women doctors, engineers, managers, accountants as men) and equality between people (students from Africa were very much welcomed). Everything else though was miserable: our free healthcare, our free cold apartments that had electricity 2 hours a day, our free education, our cheap on paper but non-existent food and medicaments.
All attempts at communism failed. Did you know that there have historically been 20,000 communes founded in the US? I wonder what happened to them!
I never said American free markets were perfect. They certainly aren't. But they are very successful.
> responding to your comments is like talking to a brick wall
I could say the same of the people I respond to! I don't expect to change anyone's mind here. The average stay at a commune is about 2 years, after which the members leave, cured of the notion that communism is better. I encourage you to join one.
I would consider co-op businesses a form of small scale communism, and they have steadily been growing in number for many decades with both workers/owners and customers praising them.
I also would consider many nation level communist movements that are held up as examples of failed communism to not really represent basic communist values very well at all, and to be mostly a thin PR cover for changes and turnover within the ruling class. Its not like the USSR was actually paying fair or equal dividends to the working class citizens who they claimed owned and controlled the country, the vast majority of the wealth, power, and control was still mostly diverted to a small class of elite.
Communes of that sort don't really have anything to do with Communism. At least not the political traditions that the word is typically associated with originating with thinkers like Marx, Bakunin, Lenin, Mao, Kropotkin, &c. Which specifically define communism as a level of economic development with certain specific prerequisites that none of these "intentional community commune" projects even attempt to meet.
Communism as a pure failure is literally propaganda, but I don't have time to cover the full comparative history of economic development under capitalism and socialism in a comment. All human projects have flaws and it's hard to compare them if you don't get into the nitty-gritty of both the successes and failures.
My take would be to scold you to start your own company that provides the features you want from your car if it's not already being provided by the marketplace
I'd have more luck petitioning the Central Car Design Committee because
> it is more profitable not to
...and if anyone thinks this is ridiculous, I'd ask them if they are for or against repealing all of our current motor vehicle regulations. If "for," they have admitted to being a hopeless libertarian, and if "against," they have acknowledged that important reasonable features can be incompatible with the profit motive of a free market and it no longer seems so strange that I might have a list which is more of the same.
> I'd have more luck petitioning the Central Car Design Committee because
Highly doubtful. Command economies have far less variety in what they offer. This isn't theoretical either just look at western cars vs Soviet cars. There's this mistaken belief that if the free market can't provide some good then a command economy could, but the reality is that if a free market can't provide a good then the chance that a command economy could is even more doubtful. Command economies tend to be very bad at allocating resources efficiently as outlined by Hayek in "The Use of Knowledge in Society".
Back in the 70s, the Department of Energy was tasked with allocating gas to the gas stations. A gas station had to apply for an allocation, and the DoE doled out the gas. The DoE doled out gas based on the previous year's usage patterns.
Sounds smart, right?
What happened is that gas consumption varies year to year due to a number of factors, like weather patterns, population changes, etc. The result was massive misallocation by the DoE - Californian had shortages of gas, Florida had gluts. That sort of situation has never happened before.
All that nonsense disappeared literally overnight when Reagan repealed all gas price and allocation controls with his very first Executive Order. I remember than wonderful day very well - at last I could drive right up to the pump and get gas, rather than wait in line. The gas lines never returned.
What you're suggesting is called "central economic planning". It is constantly tried again and again, and it never ever works. (The failures of it are always classified as "unintended side effects", though they are entirely predictable.)
> I remember than wonderful day very well - at last I could drive right up to the pump and get gas, rather than wait in line. The gas lines never returned.
I lived through the gas shortages. I remember the day the gas lines ended. They never returned in the 45 years since, despite all sorts of wars and global crises and exploding oil refineries and Hooties shooting at tankers. All gone literally overnight with the stroke of Reagan's pen.
The gas shortages never existed before Nixon imposed price and allocation controls on gas, either.
(Except during WW2, where gas shortages were caused by gas rationing.)
> The Jimmy Carter administration began a phased deregulation of oil prices on April 5, 1979, when the average price of crude oil was US$15.85 per barrel ($100/m3).
So, the process wasn't really an instant wave of a wand, or stroke of a pen. We also have this:
> Starting with the Iranian revolution, the price of crude oil rose to $39.50 per barrel ($248/m3) over the next 12 months (its all-time highest real price until March 3, 2008).[11] Deregulating domestic oil price controls allowed U.S. oil output to rise sharply from the large Prudhoe Bay fields, while oil imports fell sharply.
We also have silliness like this:
> Due to memories of the oil shortage in 1973, motorists soon began panic buying, and long lines appeared at gas stations, as they had six years earlier.[13] The average vehicle of the time consumed between two and three liters (about 0.5–0.8 gallons) of gasoline an hour while idling, and it was estimated that Americans wasted up to 150,000 barrels (24,000 m3) of oil per day idling their engines in the lines at gas stations.
So we have counterfactuals: if there was no Iranian revolution, would the effects of Carter's gradual deregulation have been felt sooner? If there was no 1973 oil shortage, would the reduction in waste have made a difference? What effect did people simply believing that the crisis was over have?
I don't propose answers to these questions; they are, in my opinion, unknowable.
I suggest that economic narratives such as the one you propose do not capture the entire picture. You had downward pressure on prices due to deregulation and expanding supply, and upwards pressure due to geopolitics and waste.
These processes do not resolve instantly, they take time to play out. I suggest caution when attempting to derive cause and effect from single events in complex systems.
I'll also note that all of this still mostly reinforces your main thesis.
One major issue with central planning is that it usually lacks the internal feedback mechanisms necessary to properly account for all of these factors.
Price signals usually work faster, and thus more efficiently! The USSR even had an economic reform where they introduced mechanisms that could be described as "shadow prices" within their own system [1]. It was the driving force behind one of the independent discoveries of linear programming.
I'd highly recommend "In Soviet Union, Optimization Problem Solves You" [2] and the novel (historical economic fiction, a nerd's nerd literary category if there ever was one) Red Plenty to learn more.
The 79 oil crisis and rationing was caused by the disruption of oil from the Iran, but the US suffered much more from the disruption of the oil from Iran than other countries that also relied on this oil. It would be wrong to ignore the role the government played in making this oil disruption significantly worse.
From "The U.S. Petroleum Crisis of 1979", PHILIP K. VERLEGER, JR. Here are some examples of problems that were identified:
>...On February 28, 1979, DOE published the following notice in the Federal Register: "It is essential that refiners enter the spring driving season with adequate gasoline stocks to meet seasonal demand requirements. We recognize that gasoline stocks are currently at adequate levels for this time of year, which is usually a period of low demand. Recent industry data indicate that total stocks are now in excess of 265 million barrels, which is less than last year's record high levels during the same period but above the average levels of previous years. Our concern is that these stocks not be drawn down precipitously as soon as the impacts of the Iranian shortfall are felt by refiners. Refiners are urged to keep stocks high enough to meet expected demand during the 1979 summer driving season, even if it is necessary to restrict somewhat the amount of surplus gasoline that is made available to purchasers currently" The implementation of these instructions had the effect of restricting the volume of gasoline available to service stations to between 80 and 90 percent of 1978 levels. This reduction was greater than the reduction in total gasoline supplies.
>...In April 1979, DOE ordered the fifteen largest refiners to sell 7.8 million barrels of crude oil to smaller firms that were unable to obtain supplies on the world market at competitive prices. …These transfers probably reduced the volume of gasoline produced in the second quarter because the refineries that purchased the crude oil had only a limited capacity to produce gasoline, while the refineries that sold it could have produced more. ...In addition to reducing the supply of gasoline, the buy/sell program appears to have affected the geographic distribution of crude oil and gasoline. This is because the primary recipients of the crude oil were refineries in the Midwest and the gulf coast areas, while the sellers were companies that were marketing throughout the nation.
>...…In April, DOE turned its attention to the low stock of distillate fuel oil … Two impacts were observed on domestic markets. First, excessive stocks of heating oil were accumulated. Second, companies may have been influenced to increase gasoline stocks in anticipation of the mandator yield controls that DOE threatened to impose.
>...Price controls on gasoline may have also created an incentive to withhold gasoline from the market when the prices of crude oil were rising rapidly. …In summary, the refiners had the capacity and the knowledge to take advantage of this opportunity. Ironically, the instructions from DOE to the companies were to do precisely what was most profitable.
>...In addition to encouraging the buildup of stocks, DOE may have added to the shortages by creating an incentive to reduce the output of crude oil. Although it is difficult to estimate what domestic supplies of crude oil might have been in the absence of any restriction, a DOE announcement in November that control levels of the base period were to be reviewed may have constrained production in the first half of 1979.
Yes and no. A large national firm like Starbucks has a national annual plan. However, this national plan is made up of a lot of little regional plans which are then combined together. This national plan is then executed. Execution relative to plan is assessed every quarter; and every quarter the plans (both national and regional) are adjusted. This assessment and these adjustments are done at both national level and also at regional level.
I feel this is a slightly disingenuous argument - mismanagement and poor planning can happen in both the public and private sectors. The US healthcare system is just one fantastic example of the private sector absolutely failing to deliver even a bare minimum standard of service. Gas lines are one thing - waiting fifteen hours in the emergency room to be seen, only to be charged thousands of dollars for some tylenol and a pat on the head is another.
> mismanagement and poor planning can happen in both the public and private sectors
Absolutely correct. But public regulation is quite resistant to course correction. Private companies have to face competitors and adapt or fail.
> The US healthcare system is just one fantastic example of the private sector absolutely failing to deliver even a bare minimum standard of service
The US healthcare system is massively regulated and interfered with by the law and things like people are forced to buy Obamacare and forced to contribute to Medicare and Medicare massively distorts market forces.
Healthcare in the US was affordable before the government got involved.
Public regulation also course-corrects, it just does so through democracy rather than competition.
I would argue that democracy is a superior method in most instances, because its motives are driven by the motives of the population as a whole, whereas capitalist competition is ultimately driven by exactly one thing: profit for the capital owners.
Where we agree I think is in the assertion that United States government tends to run things very poorly. In my opinion, however, this is not because central planning is inherently bad, but because our democracy is very weak, and we allow politicians to be controlled by corporate interests rather than the interests of the people that they represent.
EDIT: Oh, and for the record I disagree with the take that the US healthcare system is bad because it has too much regulation - but that's an entirely separate discussion that I don't think is worth going into.
Democracy cannot adapt efficiently to crises. For example, we elect a President every 4 years. You've got a long wait. A company can adapt overnight.
> capitalist competition is ultimately driven by exactly one thing: profit for the capital owners.
Absolutely correct. And competition is what drives prices relentlessly downwards.
The democratically elected government in the 70s that tried to manage the nation's gas prices and allocations with the best of intentions failed miserably.
Democracy also created the FAA, which used to regulate airline schedules, routes, and fares. Having lived through that era, too, I can attest how costly and inefficient that was. Air fares are amazingly low since, and the scheduling is very tight and efficient at placing airplanes where the people want to use them.
> this is not because central planning is inherently bad
Nobody has ever managed to make it work. Consider rent control. Endless variations of it are implemented, and all produce the "unintended" side effects of higher prices and shortages.
The US healthcare system is pretty far from privately run. It’s more an example of regulatory capture and incumbents freezing out new entrants via extensive government regulations.
This person is praising Reagan in terms of economics - I wouldn't even call it slightly disingenuous; it is entirely disingenuous. Walter commonly has absurd takes on this site; I wouldn't fight too hard in conversation.
This happens anyway, lol. Go to a car lot and you will see the majority of cars available are black, white, silver, and maybe red. Your car will have a stereo. Your car will probably have 4 seats, not 2. Dealers stock the most common configurations and, maybe this is not your experience, but my experience is that they will twist themselves into knots to avoid helping customers make custom orders for exactly what they want, even though the manufacturer has a fancy configurator page where you can do exactly that.
I've never had trouble ordering what I wanted from the options list. That usually means needing to pay more, though.
If you want custom leather seats, you can drive your car off the lot into one of many shops that offer such services, or other customizations. Me, I drove to the stereo shop to put a better stereo in (back when the factory ones were terrible).
There are many reality shows on TV featuring shops what will custom build a car to your specifications.
> Of course. That's been going on since the invention of the plow. That's why today we can do more interesting things than turn over the earth with a pointy stick all day every day.
Are you suggesting that suppression of wages is what gave us "more interesting things" to do?
> History shows us that this inevitably means people lose all control over their lives, because the state will make your decisions for you and assign you your job.
How is this different from the "free market" assigning me a job?
> For example, let's say the color of cars produce by car companies is determined by democracy. 59% vote for the cars to be green. And if you want a red car? Too bad. What if you want a 4 seat car? No dice, 53% voted for 2 seaters to be made. What if you didn't want a car stereo? You're stuck paying for it anyway, as 73% voted for it.
Concessions are the price to pay for living in a civilized society.
It's kind of a meme at this point that any kind of economic control for laborers = communism. That's not just a jump you're allowed to make, sorry. There are a plethora of nations outside the US which have stronger protections for labor, and they're doing quite well. It's not 1965 anymore, we have to start making real big boy arguments.
Of course. That's been going on since the invention of the plow. That's why today we can do more interesting things than turn over the earth with a pointy stick all day every day.
> economic democracy, where average people regain control over their lives
History shows us that this inevitably means people lose all control over their lives, because the state will make your decisions for you and assign you your job.
For example, let's say the color of cars produce by car companies is determined by democracy. 59% vote for the cars to be green. And if you want a red car? Too bad. What if you want a 4 seat car? No dice, 53% voted for 2 seaters to be made. What if you didn't want a car stereo? You're stuck paying for it anyway, as 73% voted for it.